risk alert
TRANSCRIPT
RISK ALERTGood Bunkering Practice
Written byVijay Rao ampPatrick Britton
RA 75- One of a series of Steamship Mutual Loss Prevention Bulletins Further information is available via the Loss Prevention Department +44 20 7247 54901
Bunkering is a routine but essential part of vessel operations yet frequent disputes ensue because of fuel quality problems causing machinery damage or loss of propulsion and can culminate in substantial claims for example where there is considerable disruption to vesselsrsquo schedules and operations or where the delays result in cargo damage demurrage claims such as when the fuel oil has to be removed from the vessel and the tanks cleanedA well considered bunker procedure and diligent practice is essential to ensure that bunkers of the correct specification quality and quantity are stemmed safely and efficiently The documentation to establish adherence to such procedures will be extremely important in the event of a dispute ensuingThe International Safety Management Code (ISM) requires that as per the vesselrsquos Safety Management System a detailed bunkering procedure is implemented that it be based on a detailed risk assessment and that it includes the bunker transfer operation sampling procedures training of the crew and designates a person in charge of the requisition and bunkering operationsA greater level of cooperation between all concerned parties is now required and expected given the changes in the emission regulations contamination issues that have been experienced and the availability of the different grades of fuel oil
Bunker planningAn important stage of the bunkering process is for the receiving vessel to prepare a detailed bunkering plan for the required grades of fuel and quantities Area of operation availability of the appropriate
grade of fuel and cost of fuel are important elements of the planning process and therefore needs to be considered by the charterer and vessel operator in liaison with the receiving vessel
For the safe operation of the vessel the Master must ensure that an adequate quantity of fuel oil of the appropriate grade and specification is available on board to complete the passage For a vessel to be able to undertake its intended passage safely the fuel oil stemmed must meet the statutory requirements (sulphur content and flash point) be of the grade and specification suitable for consumption in the installed machinery and be of a quality that will not cause any operational problems or machinery damage
Depending on the emission compliance strategy adopted a vessel might need to stem multiple grades of fuel oil
The following information is therefore necessary in order to prepare the bunkering plan
bull Accurate route and passage planningincluding entry and passage throughEmission Control Areas (ECAs)
bull Vessel service speed requirements as percharter party
bull Current reserve on board of each gradeof fuel oil (include any lubrication oilconstraints)
bull Bunkering locations and availability thereof the specific grades of fuel that can bearranged without undue deviation
bull Tank capacities (not more than 95) andsegregation requirements
The analysis is dependent on the accuracy of the passage planning and bunker reserve on board notwithstanding weather and hull condition which could increase the consumption and lead to insufficient fuel for the passage if not properly accounted for
The following further information should be agreed between the receiving vessel and the bunker supplier and documented
RA 75- One of a series of Steamship Mutual Loss Prevention Bulletins Further information is available via the Loss Prevention Department +44 20 7247 54902
bull Sequence of loading in case of multiplegrades
bull Pre and post bunkering documentationrequired
bull Joint gauging and witnessing of samples
bull Agreeing on the contractually binding fuelsample
bull Sampling requirement ndash location procedureand number of samples to include for labanalysis and surveyor sample as applicable
bull Final tank quantities and ullage
bull Maximum allowed bunkering rate for eachgrade
It may also be prudent to specify additional fuel oil properties such as the viscosity pour point and cold flow properties These might be dependent on limitations such as in the vessel ability to adequately heat the fuel in the tanks while operating in cold climates or to handle low viscosity fuels
The receiving vessel may also wish to consider appointing an independent surveyor to witness the bunkering and sampling particularly where there has been previous experience of quality issues or disputes in the area where the bunkers are to be supplied or where there is any concerns that the correct procedures may not be followed
Contractual best practice When the bunker plan has been formulated the following should be agreed by way of the supply contract and where applicable in the charter party The latter will address the ownership of the fuel on board It is important that these requirements are agreed well documented and communicated to all concerned parties within the terms of contract
bull Grade of each fuel oil
bull Specification of fuel oil as a minimumspecify the ISO8217 standard
bull Sulphur content for compliance or suitablefor the installed scrubber
bull Quantity of each grade of fuel oil
It is however possible that fuel is supplied which complies with the ISO8217 Standard but which is not suitable for use by the vessel Where the bunker contract is subject to English law a warranty by the supplier that the bunkers are fit for use by the vessel is likely to be implied into the contract (even if it is not expressly stated) although some suppliersrsquo terms exclude this warranty
Frequently the supplier will impose its general terms and conditions published on its website by referring to them in the Bunker Confirmation or invoice These
will determine crucial issues such as the law and jurisdiction of the contract mandatory procedures in the event of a dispute the retention of title by the supplier until payment is received and provisions limiting the supplierrsquos liability Strict adherence to the supplierrsquos procedures is necessary to preserve the buyerrsquos ability to pursue a claim for breach of contract in the event of a quantity or quality dispute Suppliersrsquo terms frequently incorporate very short time bars for notification of quality issues (frequently 14 days but sometimes as short as 24 hours) and it is essential that any issue is therefore notified within the required time period See the Clubrsquos Article ldquoBunker Time Bars Buyers Bewarerdquo
Supply contracts also frequently provide that the supplierrsquos sample shall be binding in the case of a dispute
The charterparty
Where the vessel is on time charter which provides that the charterer is to provide and pay for the bunkers then the buyer under the sale contract will be the charterer and not the owner Care will be needed in drafting the charterparty terms as they relate to bunkering
It is of course in the interests of both owner and charterer that the fuel grade and specification are clearly set out in the charterparty
In addition the owner will want to include a warranty that the fuel is fit for use by the vessel (such a warranty may be implied where the charterparty is subject to English law) and will need to consider carefully what other terms they wish to include for instance a provision that the charterer does not have authority to bind the owner or the vessel nor to create a lien over the vessel (although in some jurisdictions even such a clause would not be enough to prevent a bunker supplier having a lien for unpaid bunkers)
The charterer on the other hand will want to ensure so far as possible that the terms of the charterparty and the sale contract are consistent Important issues to consider include
bull Binding sample the vessel owner is likely towant the drip sample taken from the receivingvessel manifold to be recognised as therepresentative sample for the purpose of anydispute under the charterparty however thesupplierrsquos terms will almost always provide thatthe supplierrsquos sample is binding under the salecontract
bull The charterer should try to ensure that thesupply contract specifies the origin of thesupplierrsquos sample ndash even if the supplierwonrsquot agree to the sample being taken fromthe receiving vesselrsquos manifold the risk of
RA 75- One of a series of Steamship Mutual Loss Prevention Bulletins Further information is available via the Loss Prevention Department +44 20 7247 54903
discrepancy will be reduced if the supply contract specifies that the sample should be taken by continuous drip from the bunker barge manifold
bull Charterer could require the appointment of theirown representative (perhaps a surveyor) toattend the bunkering and take samples on behalfof the charterer
bull Charterparty requiring that the owner providesealed and signed samples to the charterer
bull If the bunkers are unlikely to be burnedimmediately how can the charterer know ofa quality problem in time to give timely noticeunder the bunker sale contract A requirementthat a sample be sent immediately for routinetesting might enable any quality issue to beidentified at an early stage
Supplier relationsThe buyer will specify the fuel oil required and the supplier is responsible for providing fuel oil that meets the agreed specification The supplier is required to ensure the quality of fuel oil by implementing appropriate control measures within the production and supply chain
Prior to making a purchase contract where possible the buyer should verify that the supplier
bull is licenced by the local authority (potentialfines in some countries for use of anunlicensed supplier)
bull has a quality management system
bull will issue a Certificate of Quality based onfuel analysis in accordance with the ISO8217standard specification
bull has a track record of supplying the requiredgrade of fuel
Additionally it should also be verified that the bunker barge operator if independent of the supplier has a quality and safety management system in place
Bunkering OperationThe supplier or representative should provide the following documents for the bunkering operations to the recipient vessel and well enough in advance to allow for any discrepancy to be raised and discussed thereby avoiding any last-minute disputes and delays
bull Certificate of quality issued in accordance withISO8217 standard
bull Safety Data Sheet (SDS) required as perSOLAS Chapter VI Regulation 51
bull Bunker Delivery Note (BDN)
The issue of a BDN is required as per Marpol Annex VI Reg 185 and must include details as per Appendix V of Marpol BDN templates issued by local authority must take precedence over Marpol issued BDN template It is imperative that the BDN is appropriately completed and the entries should be verified by the receiving vessel
The BDN must include a declaration that the fuel oil is in conformity with MARPOL Annex VI Reg 183 and that the sulphur content of fuel oil supplied does not exceed the limit value as per Regulation 141 or 144 or else a specified sulphur value has been stated where for example a scrubber has been installed or in some cases where exemption has been granted for trials of emission control technology in accordance with MEPC 286(71)
In addition to the above documentation the following should be communicated and agreed between the supplier and the receiving vessel
bull calibrationtype approval certificates- flowmeter drip sampler remote level gaugingetc
bull tank volumes start and completion
bull local reporting obligations- eg bunkertransfer permit signed checklist by bothparties
bull checklists completed - pre-bunkering duringtransfer and completion
bull timeline of events recorded
bull communication emergency procedures andrates of transfer documented
bull Sampling locations and protocols
bull Agreement on location of source of bindingsample
Some local authorities also require a certificate of inspection to be issued signed by both parties when a joint inspection has been carried out
A toolbox meeting should be undertaken with all involved parties to review and record what has been agreed before commencement of the bunkering operation
A checklist should be prepared and used for each stage of the operations as a matter of good bunkering practice by the designated representatives of both parties
A safe means of personnel transfer between the vessels should be provided the use of a non-man-riding crane is not acceptable Where there are practical and safety concerns for personnel transfer consideration should be given for remote inspection
The bunkering operation is to be controlled by the designated person generally the chief engineer
in line with the vessels International Safety Management procedures and is to be undertaken by a designated bunkering team which should include both deck and engine personnel
Rest and work hour requirements must be met especially in case of simultaneous operations with consideration given for non-critical operations to be postponed
Bunker in progress
Drip sampler and sealed container
SamplingAn official sample of bunker fuel is required as per MARPOL Annex VI Reg 18 and is to be provided by the supplier along with the BDN
Representative samples are also required for carrying out independent laboratory analysis and a ship sample should be retained for any further testing that may be required as highlighted for example in claims where contamination could be an issue
As per the guidance in MEPC 182(59) the samples should be drawn at the receiving shiprsquos inlet bunker manifold and should be drawn continuously throughout the bunker delivery period
In case of more than one supplier or for example where multiple vessels are used for supply of the required quantity of bunkers a separate set of samples should be available drawn along with the applicable BDN
General sampling procedures
bull A type-approved automatic or manualcontinuous drip sampler
bull A clean collection container of about 5litre capacity capable of being sealedat the needle valve in order to preventcontamination
bull Continuous uniform flow to be maintainedin order to fill the container with a samplerepresentative of the entire bunkeringprocess avoid changing the flow rate Whererequired the container should be changedensuring that containers are sealed inagreement with all parties Experiencesuggests that the sampling rate needs tobe closely monitored by the crew membermanning the manifold to prevent overfilling ofthe container but also to ensure an adequatequantity of sample is collected
bull Upon completion of bunkering the sealbetween the container and needle valve isbroken
bull The sample is thoroughly shaken forhomogeneity and immediately transferredinto clean 750 ml sample bottlessimultaneously filling the samples in portions(ie not sequential) until the bottles are filledwith at least 400ml in each and be careful toprevent any contamination of the samples
A minimum of four samples representative of the stemmed bunker should be collected ideally with additional samples being collected where possible and appropriate such as where a surveyor has been appointed or where a sample
RA 75- One of a series of Steamship Mutual Loss Prevention Bulletins Further information is available via the Loss Prevention Department +44 20 7247 54904
is required by the Charterer
MARPOL sample (statutory forreceiving vessel)
Supplierrsquos sample (may requestadditional and should be agreed inadvance)
Shiprsquos additional ship sample in casedispute ensues
Sample for laboratory analysis
A tamper proof seal and label with the below information must be fitted to each sample bottle
Vessel details and location
Supplier details and tanker orterminal name
Sampling location
Grade of fuel bunkered
Seal number for the sample bottle
Signature of supplier and receiverand stamped
Initial sealing breaking of seal of the collecting container and transfer to sample bottles and labelling must be witnessed and signed by both parties A statement must be recorded to this effect
The seal numbers should be recorded on the BDN including any additional samples that might have been taken on either side of the hose connection
The BDN and the labels of the sample bottles must be signed by both parties only upon completion of the bunkering and when the quantities have been verified Due care must be taken in this custody process to avoid any errors arising which could have detrimental consequences when pursuing or defending a potential claim in case of a dispute
Where the supply contact says that the supplier sample is binding the receiving vessel should ascertain the origin of the sample Where there is any doubt as to the veracity of the sample the receiving vessel should issue a letter of protest as detailed below
Letter of protest (LOP)Note of protest (NOP)Any deviation from the above procedures should be addressed and recorded at the time of bunkering
A letter of protest should be issued in such situations detailing the discrepancy Having pre-prepared templates could prove useful in such a situation The Club will be able to assist the Member in this regard
Whilst not exhaustive some of the reasons for an LOP include
bull Short supply of bunkers
bull BDN not issued or not in accordancewith the amended MARPOL VI Reg 185requirement
bull Source of the sample provided by supplieris unknown or not representative per MEPC182(59) or as per local regulations In suchinstances the label should be signed ldquoforreceipt only - source unknownrdquo
bull Refusal to grant access to the bunkervesselor refusal to carry out joint inspection
bull Discrepancy in stated properties in BDNsuch as temperature water content anddensity as may be verified by on board testkits
bull Lack of appropriate documentationcalibration certificates approved tank tablesand plans
Where there is any doubt as to the veracity of the MARPOL Sample provided or where the supplier fails to provide a MARPOL sample or an agreed binding sample the receiving vessel should endeavour to seek the agreement of the bunker supplier to utilise the vesselrsquos representative sample [MEPC 182(59)] as the MARPOL and binding sample The sample should be labelled and numbered for inclusion with the supplier delivered sample when provided and additionally recorded in the BDN where agreed The records of the additional samples should also be maintained in this case An inventory of a complete set of sample kits as provided by testing laboratories should always be maintained on board for this purpose
Dispute resolutionThe Owner or Charterer should immediately notify its PampI Club andor FDampD provider in the event of a dispute The Ownerrsquos Hull amp Machinery underwriters Charterersrsquo Damage to Hull underwriters should also be notified if the vesselrsquos machinery has been damaged If the seller was not the physical supplier a buyer should also consider notifying the latter in the event that it is possible to bring a claim in tort
Where not already in place an independent surveyor should be immediately appointed for protecting the interest of the party
In certain jurisdictions a supplier of fuel oil may have a maritime lien against the vessel Where a vessel is on charter Owners can try to protect the vessel against such claims by serving a lsquoprohibition of lien noticersquo on the supplier before the supply takes place The supplier is then on notice that the fuel oil is supplied for the account of the time charterer alone and no lien is attached to the vessel The BDN may
RA 75- One of a series of Steamship Mutual Loss Prevention Bulletins Further information is available via the Loss Prevention Department +44 20 7247 54905
be similarly endorsed by the ship owner although the legal effect is questionable
Dispute resolution procedures may also be specified in the contract including how the laboratory analysis is to be carried out in case of a fuel oil quality dispute
Retention and storageThe representative sample per Regulation 18 of Marpol VI lsquoMarpol samplersquo is required to be retained for 12 months or until the complete bunker supply has been consumed whichever is the longer period The PSC will request for the MARPOL sample along with the BDN in case of an alleged violation of the emission regulations
A record of the samples taken and retained should be maintained including details of appropriate disposal upon completion of the statutory period and when there is no ensuing dispute
The BDN must be retained by both parties for a period of three years and be readily available for PSC inspections
Similarly the supplier is also required to retain the BDN for the same period of at least three years and available for verification by the port state The supplier should retain their representative sample for a minimum of 30 days (3 months recommended) and longer in case of a dispute when it should be retained until resolution
The bunker sample should be stored outside the accommodation and preferably outside the engine room in a sheltered space away from direct exposure to sun light and not subject to elevated temperature recommended as at least 28oCelsius below the flash point A copy of the Material Safety Data Sheet must be displayed at the location
General recommendationsIn order to be able to draw out fair terms of contract close cooperation between parties involved in the bunkering process is strongly encouraged Although experience suggests that this can be difficult to implement The possibility for longer term contracts with suppliers should be explored where the vessel operations allow
It is imperative that the contractual terms are carefully considered (both the supply contract and any relevant charterparty)
Diligent pre-planning following well established procedures maintaining full documentary records duly signedwitnessed and taking careful and representative sampling is paramount in avoiding a dispute and to support resolution where dispute arises
MEPC1Circ 875 - Guidance on Best Practice for Fuel Oil PurchasersUsers for Assuring the Quality of Fuel Oil Onboard Ships also provides valuable information and guidance
Crew understanding and training is imperative in order to ensure that the bunkering procedures are being strictly adhered to and that records are being meticulously maintained
Although limited in their range of analysis onboard testing kits could prove useful in verifying the basic properties of the fuel oil such as density water content and viscosity and raising any concerns for an early intervention in anticipation of a potential dispute The on-board testing should however not be considered a substitute for laboratory analysis carried out as per ISO specification
The factors that need to be taken into consideration are the quality assurance in the supply chain contractual compliance segregated stemming and storage fuel analysis and fuel management
Members are encouraged to make use of the ISO 137392010 and regional standards such as SS600 amp SS524 Singapore Standards for Code of practice for bunkering Local requirements for bunkering must always be followed For vessels trading to the United States the USCG 33 CFR 155 also requires that their requirements are incorporated within the bunkering procedures followed recorded and available for inspection
Members are encouraged to maintain a register of all fuel suppliers in their area of operation and to regularly update the information based upon their fleet experience and other pertinent information that may be publicly available such as the IMO Global Integrated Shipping Information System (GSIS)
For further articles on the topichttpswwwsteamshipmutualcompublicationsArticlescompliance2020sulphurcap092018htm
httpswwwsteamshipmutualcompublicationsArticlesbunker-time-bars052019htm
httpswwwsteamshipmutualcompublicationsArticlesturkeyundeclared-bunker-cases-at-turkish-ports022020htm
httpswwwsteamshipmutualcomRA60_Bunker_ fuel_quality_problemspdf
RA 75- One of a series of Steamship Mutual Loss Prevention Bulletins Further information is available via the Loss Prevention Department +44 20 7247 54906
RA 75- One of a series of Steamship Mutual Loss Prevention Bulletins Further information is available via the Loss Prevention Department +44 20 7247 54902
bull Sequence of loading in case of multiplegrades
bull Pre and post bunkering documentationrequired
bull Joint gauging and witnessing of samples
bull Agreeing on the contractually binding fuelsample
bull Sampling requirement ndash location procedureand number of samples to include for labanalysis and surveyor sample as applicable
bull Final tank quantities and ullage
bull Maximum allowed bunkering rate for eachgrade
It may also be prudent to specify additional fuel oil properties such as the viscosity pour point and cold flow properties These might be dependent on limitations such as in the vessel ability to adequately heat the fuel in the tanks while operating in cold climates or to handle low viscosity fuels
The receiving vessel may also wish to consider appointing an independent surveyor to witness the bunkering and sampling particularly where there has been previous experience of quality issues or disputes in the area where the bunkers are to be supplied or where there is any concerns that the correct procedures may not be followed
Contractual best practice When the bunker plan has been formulated the following should be agreed by way of the supply contract and where applicable in the charter party The latter will address the ownership of the fuel on board It is important that these requirements are agreed well documented and communicated to all concerned parties within the terms of contract
bull Grade of each fuel oil
bull Specification of fuel oil as a minimumspecify the ISO8217 standard
bull Sulphur content for compliance or suitablefor the installed scrubber
bull Quantity of each grade of fuel oil
It is however possible that fuel is supplied which complies with the ISO8217 Standard but which is not suitable for use by the vessel Where the bunker contract is subject to English law a warranty by the supplier that the bunkers are fit for use by the vessel is likely to be implied into the contract (even if it is not expressly stated) although some suppliersrsquo terms exclude this warranty
Frequently the supplier will impose its general terms and conditions published on its website by referring to them in the Bunker Confirmation or invoice These
will determine crucial issues such as the law and jurisdiction of the contract mandatory procedures in the event of a dispute the retention of title by the supplier until payment is received and provisions limiting the supplierrsquos liability Strict adherence to the supplierrsquos procedures is necessary to preserve the buyerrsquos ability to pursue a claim for breach of contract in the event of a quantity or quality dispute Suppliersrsquo terms frequently incorporate very short time bars for notification of quality issues (frequently 14 days but sometimes as short as 24 hours) and it is essential that any issue is therefore notified within the required time period See the Clubrsquos Article ldquoBunker Time Bars Buyers Bewarerdquo
Supply contracts also frequently provide that the supplierrsquos sample shall be binding in the case of a dispute
The charterparty
Where the vessel is on time charter which provides that the charterer is to provide and pay for the bunkers then the buyer under the sale contract will be the charterer and not the owner Care will be needed in drafting the charterparty terms as they relate to bunkering
It is of course in the interests of both owner and charterer that the fuel grade and specification are clearly set out in the charterparty
In addition the owner will want to include a warranty that the fuel is fit for use by the vessel (such a warranty may be implied where the charterparty is subject to English law) and will need to consider carefully what other terms they wish to include for instance a provision that the charterer does not have authority to bind the owner or the vessel nor to create a lien over the vessel (although in some jurisdictions even such a clause would not be enough to prevent a bunker supplier having a lien for unpaid bunkers)
The charterer on the other hand will want to ensure so far as possible that the terms of the charterparty and the sale contract are consistent Important issues to consider include
bull Binding sample the vessel owner is likely towant the drip sample taken from the receivingvessel manifold to be recognised as therepresentative sample for the purpose of anydispute under the charterparty however thesupplierrsquos terms will almost always provide thatthe supplierrsquos sample is binding under the salecontract
bull The charterer should try to ensure that thesupply contract specifies the origin of thesupplierrsquos sample ndash even if the supplierwonrsquot agree to the sample being taken fromthe receiving vesselrsquos manifold the risk of
RA 75- One of a series of Steamship Mutual Loss Prevention Bulletins Further information is available via the Loss Prevention Department +44 20 7247 54903
discrepancy will be reduced if the supply contract specifies that the sample should be taken by continuous drip from the bunker barge manifold
bull Charterer could require the appointment of theirown representative (perhaps a surveyor) toattend the bunkering and take samples on behalfof the charterer
bull Charterparty requiring that the owner providesealed and signed samples to the charterer
bull If the bunkers are unlikely to be burnedimmediately how can the charterer know ofa quality problem in time to give timely noticeunder the bunker sale contract A requirementthat a sample be sent immediately for routinetesting might enable any quality issue to beidentified at an early stage
Supplier relationsThe buyer will specify the fuel oil required and the supplier is responsible for providing fuel oil that meets the agreed specification The supplier is required to ensure the quality of fuel oil by implementing appropriate control measures within the production and supply chain
Prior to making a purchase contract where possible the buyer should verify that the supplier
bull is licenced by the local authority (potentialfines in some countries for use of anunlicensed supplier)
bull has a quality management system
bull will issue a Certificate of Quality based onfuel analysis in accordance with the ISO8217standard specification
bull has a track record of supplying the requiredgrade of fuel
Additionally it should also be verified that the bunker barge operator if independent of the supplier has a quality and safety management system in place
Bunkering OperationThe supplier or representative should provide the following documents for the bunkering operations to the recipient vessel and well enough in advance to allow for any discrepancy to be raised and discussed thereby avoiding any last-minute disputes and delays
bull Certificate of quality issued in accordance withISO8217 standard
bull Safety Data Sheet (SDS) required as perSOLAS Chapter VI Regulation 51
bull Bunker Delivery Note (BDN)
The issue of a BDN is required as per Marpol Annex VI Reg 185 and must include details as per Appendix V of Marpol BDN templates issued by local authority must take precedence over Marpol issued BDN template It is imperative that the BDN is appropriately completed and the entries should be verified by the receiving vessel
The BDN must include a declaration that the fuel oil is in conformity with MARPOL Annex VI Reg 183 and that the sulphur content of fuel oil supplied does not exceed the limit value as per Regulation 141 or 144 or else a specified sulphur value has been stated where for example a scrubber has been installed or in some cases where exemption has been granted for trials of emission control technology in accordance with MEPC 286(71)
In addition to the above documentation the following should be communicated and agreed between the supplier and the receiving vessel
bull calibrationtype approval certificates- flowmeter drip sampler remote level gaugingetc
bull tank volumes start and completion
bull local reporting obligations- eg bunkertransfer permit signed checklist by bothparties
bull checklists completed - pre-bunkering duringtransfer and completion
bull timeline of events recorded
bull communication emergency procedures andrates of transfer documented
bull Sampling locations and protocols
bull Agreement on location of source of bindingsample
Some local authorities also require a certificate of inspection to be issued signed by both parties when a joint inspection has been carried out
A toolbox meeting should be undertaken with all involved parties to review and record what has been agreed before commencement of the bunkering operation
A checklist should be prepared and used for each stage of the operations as a matter of good bunkering practice by the designated representatives of both parties
A safe means of personnel transfer between the vessels should be provided the use of a non-man-riding crane is not acceptable Where there are practical and safety concerns for personnel transfer consideration should be given for remote inspection
The bunkering operation is to be controlled by the designated person generally the chief engineer
in line with the vessels International Safety Management procedures and is to be undertaken by a designated bunkering team which should include both deck and engine personnel
Rest and work hour requirements must be met especially in case of simultaneous operations with consideration given for non-critical operations to be postponed
Bunker in progress
Drip sampler and sealed container
SamplingAn official sample of bunker fuel is required as per MARPOL Annex VI Reg 18 and is to be provided by the supplier along with the BDN
Representative samples are also required for carrying out independent laboratory analysis and a ship sample should be retained for any further testing that may be required as highlighted for example in claims where contamination could be an issue
As per the guidance in MEPC 182(59) the samples should be drawn at the receiving shiprsquos inlet bunker manifold and should be drawn continuously throughout the bunker delivery period
In case of more than one supplier or for example where multiple vessels are used for supply of the required quantity of bunkers a separate set of samples should be available drawn along with the applicable BDN
General sampling procedures
bull A type-approved automatic or manualcontinuous drip sampler
bull A clean collection container of about 5litre capacity capable of being sealedat the needle valve in order to preventcontamination
bull Continuous uniform flow to be maintainedin order to fill the container with a samplerepresentative of the entire bunkeringprocess avoid changing the flow rate Whererequired the container should be changedensuring that containers are sealed inagreement with all parties Experiencesuggests that the sampling rate needs tobe closely monitored by the crew membermanning the manifold to prevent overfilling ofthe container but also to ensure an adequatequantity of sample is collected
bull Upon completion of bunkering the sealbetween the container and needle valve isbroken
bull The sample is thoroughly shaken forhomogeneity and immediately transferredinto clean 750 ml sample bottlessimultaneously filling the samples in portions(ie not sequential) until the bottles are filledwith at least 400ml in each and be careful toprevent any contamination of the samples
A minimum of four samples representative of the stemmed bunker should be collected ideally with additional samples being collected where possible and appropriate such as where a surveyor has been appointed or where a sample
RA 75- One of a series of Steamship Mutual Loss Prevention Bulletins Further information is available via the Loss Prevention Department +44 20 7247 54904
is required by the Charterer
MARPOL sample (statutory forreceiving vessel)
Supplierrsquos sample (may requestadditional and should be agreed inadvance)
Shiprsquos additional ship sample in casedispute ensues
Sample for laboratory analysis
A tamper proof seal and label with the below information must be fitted to each sample bottle
Vessel details and location
Supplier details and tanker orterminal name
Sampling location
Grade of fuel bunkered
Seal number for the sample bottle
Signature of supplier and receiverand stamped
Initial sealing breaking of seal of the collecting container and transfer to sample bottles and labelling must be witnessed and signed by both parties A statement must be recorded to this effect
The seal numbers should be recorded on the BDN including any additional samples that might have been taken on either side of the hose connection
The BDN and the labels of the sample bottles must be signed by both parties only upon completion of the bunkering and when the quantities have been verified Due care must be taken in this custody process to avoid any errors arising which could have detrimental consequences when pursuing or defending a potential claim in case of a dispute
Where the supply contact says that the supplier sample is binding the receiving vessel should ascertain the origin of the sample Where there is any doubt as to the veracity of the sample the receiving vessel should issue a letter of protest as detailed below
Letter of protest (LOP)Note of protest (NOP)Any deviation from the above procedures should be addressed and recorded at the time of bunkering
A letter of protest should be issued in such situations detailing the discrepancy Having pre-prepared templates could prove useful in such a situation The Club will be able to assist the Member in this regard
Whilst not exhaustive some of the reasons for an LOP include
bull Short supply of bunkers
bull BDN not issued or not in accordancewith the amended MARPOL VI Reg 185requirement
bull Source of the sample provided by supplieris unknown or not representative per MEPC182(59) or as per local regulations In suchinstances the label should be signed ldquoforreceipt only - source unknownrdquo
bull Refusal to grant access to the bunkervesselor refusal to carry out joint inspection
bull Discrepancy in stated properties in BDNsuch as temperature water content anddensity as may be verified by on board testkits
bull Lack of appropriate documentationcalibration certificates approved tank tablesand plans
Where there is any doubt as to the veracity of the MARPOL Sample provided or where the supplier fails to provide a MARPOL sample or an agreed binding sample the receiving vessel should endeavour to seek the agreement of the bunker supplier to utilise the vesselrsquos representative sample [MEPC 182(59)] as the MARPOL and binding sample The sample should be labelled and numbered for inclusion with the supplier delivered sample when provided and additionally recorded in the BDN where agreed The records of the additional samples should also be maintained in this case An inventory of a complete set of sample kits as provided by testing laboratories should always be maintained on board for this purpose
Dispute resolutionThe Owner or Charterer should immediately notify its PampI Club andor FDampD provider in the event of a dispute The Ownerrsquos Hull amp Machinery underwriters Charterersrsquo Damage to Hull underwriters should also be notified if the vesselrsquos machinery has been damaged If the seller was not the physical supplier a buyer should also consider notifying the latter in the event that it is possible to bring a claim in tort
Where not already in place an independent surveyor should be immediately appointed for protecting the interest of the party
In certain jurisdictions a supplier of fuel oil may have a maritime lien against the vessel Where a vessel is on charter Owners can try to protect the vessel against such claims by serving a lsquoprohibition of lien noticersquo on the supplier before the supply takes place The supplier is then on notice that the fuel oil is supplied for the account of the time charterer alone and no lien is attached to the vessel The BDN may
RA 75- One of a series of Steamship Mutual Loss Prevention Bulletins Further information is available via the Loss Prevention Department +44 20 7247 54905
be similarly endorsed by the ship owner although the legal effect is questionable
Dispute resolution procedures may also be specified in the contract including how the laboratory analysis is to be carried out in case of a fuel oil quality dispute
Retention and storageThe representative sample per Regulation 18 of Marpol VI lsquoMarpol samplersquo is required to be retained for 12 months or until the complete bunker supply has been consumed whichever is the longer period The PSC will request for the MARPOL sample along with the BDN in case of an alleged violation of the emission regulations
A record of the samples taken and retained should be maintained including details of appropriate disposal upon completion of the statutory period and when there is no ensuing dispute
The BDN must be retained by both parties for a period of three years and be readily available for PSC inspections
Similarly the supplier is also required to retain the BDN for the same period of at least three years and available for verification by the port state The supplier should retain their representative sample for a minimum of 30 days (3 months recommended) and longer in case of a dispute when it should be retained until resolution
The bunker sample should be stored outside the accommodation and preferably outside the engine room in a sheltered space away from direct exposure to sun light and not subject to elevated temperature recommended as at least 28oCelsius below the flash point A copy of the Material Safety Data Sheet must be displayed at the location
General recommendationsIn order to be able to draw out fair terms of contract close cooperation between parties involved in the bunkering process is strongly encouraged Although experience suggests that this can be difficult to implement The possibility for longer term contracts with suppliers should be explored where the vessel operations allow
It is imperative that the contractual terms are carefully considered (both the supply contract and any relevant charterparty)
Diligent pre-planning following well established procedures maintaining full documentary records duly signedwitnessed and taking careful and representative sampling is paramount in avoiding a dispute and to support resolution where dispute arises
MEPC1Circ 875 - Guidance on Best Practice for Fuel Oil PurchasersUsers for Assuring the Quality of Fuel Oil Onboard Ships also provides valuable information and guidance
Crew understanding and training is imperative in order to ensure that the bunkering procedures are being strictly adhered to and that records are being meticulously maintained
Although limited in their range of analysis onboard testing kits could prove useful in verifying the basic properties of the fuel oil such as density water content and viscosity and raising any concerns for an early intervention in anticipation of a potential dispute The on-board testing should however not be considered a substitute for laboratory analysis carried out as per ISO specification
The factors that need to be taken into consideration are the quality assurance in the supply chain contractual compliance segregated stemming and storage fuel analysis and fuel management
Members are encouraged to make use of the ISO 137392010 and regional standards such as SS600 amp SS524 Singapore Standards for Code of practice for bunkering Local requirements for bunkering must always be followed For vessels trading to the United States the USCG 33 CFR 155 also requires that their requirements are incorporated within the bunkering procedures followed recorded and available for inspection
Members are encouraged to maintain a register of all fuel suppliers in their area of operation and to regularly update the information based upon their fleet experience and other pertinent information that may be publicly available such as the IMO Global Integrated Shipping Information System (GSIS)
For further articles on the topichttpswwwsteamshipmutualcompublicationsArticlescompliance2020sulphurcap092018htm
httpswwwsteamshipmutualcompublicationsArticlesbunker-time-bars052019htm
httpswwwsteamshipmutualcompublicationsArticlesturkeyundeclared-bunker-cases-at-turkish-ports022020htm
httpswwwsteamshipmutualcomRA60_Bunker_ fuel_quality_problemspdf
RA 75- One of a series of Steamship Mutual Loss Prevention Bulletins Further information is available via the Loss Prevention Department +44 20 7247 54906
RA 75- One of a series of Steamship Mutual Loss Prevention Bulletins Further information is available via the Loss Prevention Department +44 20 7247 54903
discrepancy will be reduced if the supply contract specifies that the sample should be taken by continuous drip from the bunker barge manifold
bull Charterer could require the appointment of theirown representative (perhaps a surveyor) toattend the bunkering and take samples on behalfof the charterer
bull Charterparty requiring that the owner providesealed and signed samples to the charterer
bull If the bunkers are unlikely to be burnedimmediately how can the charterer know ofa quality problem in time to give timely noticeunder the bunker sale contract A requirementthat a sample be sent immediately for routinetesting might enable any quality issue to beidentified at an early stage
Supplier relationsThe buyer will specify the fuel oil required and the supplier is responsible for providing fuel oil that meets the agreed specification The supplier is required to ensure the quality of fuel oil by implementing appropriate control measures within the production and supply chain
Prior to making a purchase contract where possible the buyer should verify that the supplier
bull is licenced by the local authority (potentialfines in some countries for use of anunlicensed supplier)
bull has a quality management system
bull will issue a Certificate of Quality based onfuel analysis in accordance with the ISO8217standard specification
bull has a track record of supplying the requiredgrade of fuel
Additionally it should also be verified that the bunker barge operator if independent of the supplier has a quality and safety management system in place
Bunkering OperationThe supplier or representative should provide the following documents for the bunkering operations to the recipient vessel and well enough in advance to allow for any discrepancy to be raised and discussed thereby avoiding any last-minute disputes and delays
bull Certificate of quality issued in accordance withISO8217 standard
bull Safety Data Sheet (SDS) required as perSOLAS Chapter VI Regulation 51
bull Bunker Delivery Note (BDN)
The issue of a BDN is required as per Marpol Annex VI Reg 185 and must include details as per Appendix V of Marpol BDN templates issued by local authority must take precedence over Marpol issued BDN template It is imperative that the BDN is appropriately completed and the entries should be verified by the receiving vessel
The BDN must include a declaration that the fuel oil is in conformity with MARPOL Annex VI Reg 183 and that the sulphur content of fuel oil supplied does not exceed the limit value as per Regulation 141 or 144 or else a specified sulphur value has been stated where for example a scrubber has been installed or in some cases where exemption has been granted for trials of emission control technology in accordance with MEPC 286(71)
In addition to the above documentation the following should be communicated and agreed between the supplier and the receiving vessel
bull calibrationtype approval certificates- flowmeter drip sampler remote level gaugingetc
bull tank volumes start and completion
bull local reporting obligations- eg bunkertransfer permit signed checklist by bothparties
bull checklists completed - pre-bunkering duringtransfer and completion
bull timeline of events recorded
bull communication emergency procedures andrates of transfer documented
bull Sampling locations and protocols
bull Agreement on location of source of bindingsample
Some local authorities also require a certificate of inspection to be issued signed by both parties when a joint inspection has been carried out
A toolbox meeting should be undertaken with all involved parties to review and record what has been agreed before commencement of the bunkering operation
A checklist should be prepared and used for each stage of the operations as a matter of good bunkering practice by the designated representatives of both parties
A safe means of personnel transfer between the vessels should be provided the use of a non-man-riding crane is not acceptable Where there are practical and safety concerns for personnel transfer consideration should be given for remote inspection
The bunkering operation is to be controlled by the designated person generally the chief engineer
in line with the vessels International Safety Management procedures and is to be undertaken by a designated bunkering team which should include both deck and engine personnel
Rest and work hour requirements must be met especially in case of simultaneous operations with consideration given for non-critical operations to be postponed
Bunker in progress
Drip sampler and sealed container
SamplingAn official sample of bunker fuel is required as per MARPOL Annex VI Reg 18 and is to be provided by the supplier along with the BDN
Representative samples are also required for carrying out independent laboratory analysis and a ship sample should be retained for any further testing that may be required as highlighted for example in claims where contamination could be an issue
As per the guidance in MEPC 182(59) the samples should be drawn at the receiving shiprsquos inlet bunker manifold and should be drawn continuously throughout the bunker delivery period
In case of more than one supplier or for example where multiple vessels are used for supply of the required quantity of bunkers a separate set of samples should be available drawn along with the applicable BDN
General sampling procedures
bull A type-approved automatic or manualcontinuous drip sampler
bull A clean collection container of about 5litre capacity capable of being sealedat the needle valve in order to preventcontamination
bull Continuous uniform flow to be maintainedin order to fill the container with a samplerepresentative of the entire bunkeringprocess avoid changing the flow rate Whererequired the container should be changedensuring that containers are sealed inagreement with all parties Experiencesuggests that the sampling rate needs tobe closely monitored by the crew membermanning the manifold to prevent overfilling ofthe container but also to ensure an adequatequantity of sample is collected
bull Upon completion of bunkering the sealbetween the container and needle valve isbroken
bull The sample is thoroughly shaken forhomogeneity and immediately transferredinto clean 750 ml sample bottlessimultaneously filling the samples in portions(ie not sequential) until the bottles are filledwith at least 400ml in each and be careful toprevent any contamination of the samples
A minimum of four samples representative of the stemmed bunker should be collected ideally with additional samples being collected where possible and appropriate such as where a surveyor has been appointed or where a sample
RA 75- One of a series of Steamship Mutual Loss Prevention Bulletins Further information is available via the Loss Prevention Department +44 20 7247 54904
is required by the Charterer
MARPOL sample (statutory forreceiving vessel)
Supplierrsquos sample (may requestadditional and should be agreed inadvance)
Shiprsquos additional ship sample in casedispute ensues
Sample for laboratory analysis
A tamper proof seal and label with the below information must be fitted to each sample bottle
Vessel details and location
Supplier details and tanker orterminal name
Sampling location
Grade of fuel bunkered
Seal number for the sample bottle
Signature of supplier and receiverand stamped
Initial sealing breaking of seal of the collecting container and transfer to sample bottles and labelling must be witnessed and signed by both parties A statement must be recorded to this effect
The seal numbers should be recorded on the BDN including any additional samples that might have been taken on either side of the hose connection
The BDN and the labels of the sample bottles must be signed by both parties only upon completion of the bunkering and when the quantities have been verified Due care must be taken in this custody process to avoid any errors arising which could have detrimental consequences when pursuing or defending a potential claim in case of a dispute
Where the supply contact says that the supplier sample is binding the receiving vessel should ascertain the origin of the sample Where there is any doubt as to the veracity of the sample the receiving vessel should issue a letter of protest as detailed below
Letter of protest (LOP)Note of protest (NOP)Any deviation from the above procedures should be addressed and recorded at the time of bunkering
A letter of protest should be issued in such situations detailing the discrepancy Having pre-prepared templates could prove useful in such a situation The Club will be able to assist the Member in this regard
Whilst not exhaustive some of the reasons for an LOP include
bull Short supply of bunkers
bull BDN not issued or not in accordancewith the amended MARPOL VI Reg 185requirement
bull Source of the sample provided by supplieris unknown or not representative per MEPC182(59) or as per local regulations In suchinstances the label should be signed ldquoforreceipt only - source unknownrdquo
bull Refusal to grant access to the bunkervesselor refusal to carry out joint inspection
bull Discrepancy in stated properties in BDNsuch as temperature water content anddensity as may be verified by on board testkits
bull Lack of appropriate documentationcalibration certificates approved tank tablesand plans
Where there is any doubt as to the veracity of the MARPOL Sample provided or where the supplier fails to provide a MARPOL sample or an agreed binding sample the receiving vessel should endeavour to seek the agreement of the bunker supplier to utilise the vesselrsquos representative sample [MEPC 182(59)] as the MARPOL and binding sample The sample should be labelled and numbered for inclusion with the supplier delivered sample when provided and additionally recorded in the BDN where agreed The records of the additional samples should also be maintained in this case An inventory of a complete set of sample kits as provided by testing laboratories should always be maintained on board for this purpose
Dispute resolutionThe Owner or Charterer should immediately notify its PampI Club andor FDampD provider in the event of a dispute The Ownerrsquos Hull amp Machinery underwriters Charterersrsquo Damage to Hull underwriters should also be notified if the vesselrsquos machinery has been damaged If the seller was not the physical supplier a buyer should also consider notifying the latter in the event that it is possible to bring a claim in tort
Where not already in place an independent surveyor should be immediately appointed for protecting the interest of the party
In certain jurisdictions a supplier of fuel oil may have a maritime lien against the vessel Where a vessel is on charter Owners can try to protect the vessel against such claims by serving a lsquoprohibition of lien noticersquo on the supplier before the supply takes place The supplier is then on notice that the fuel oil is supplied for the account of the time charterer alone and no lien is attached to the vessel The BDN may
RA 75- One of a series of Steamship Mutual Loss Prevention Bulletins Further information is available via the Loss Prevention Department +44 20 7247 54905
be similarly endorsed by the ship owner although the legal effect is questionable
Dispute resolution procedures may also be specified in the contract including how the laboratory analysis is to be carried out in case of a fuel oil quality dispute
Retention and storageThe representative sample per Regulation 18 of Marpol VI lsquoMarpol samplersquo is required to be retained for 12 months or until the complete bunker supply has been consumed whichever is the longer period The PSC will request for the MARPOL sample along with the BDN in case of an alleged violation of the emission regulations
A record of the samples taken and retained should be maintained including details of appropriate disposal upon completion of the statutory period and when there is no ensuing dispute
The BDN must be retained by both parties for a period of three years and be readily available for PSC inspections
Similarly the supplier is also required to retain the BDN for the same period of at least three years and available for verification by the port state The supplier should retain their representative sample for a minimum of 30 days (3 months recommended) and longer in case of a dispute when it should be retained until resolution
The bunker sample should be stored outside the accommodation and preferably outside the engine room in a sheltered space away from direct exposure to sun light and not subject to elevated temperature recommended as at least 28oCelsius below the flash point A copy of the Material Safety Data Sheet must be displayed at the location
General recommendationsIn order to be able to draw out fair terms of contract close cooperation between parties involved in the bunkering process is strongly encouraged Although experience suggests that this can be difficult to implement The possibility for longer term contracts with suppliers should be explored where the vessel operations allow
It is imperative that the contractual terms are carefully considered (both the supply contract and any relevant charterparty)
Diligent pre-planning following well established procedures maintaining full documentary records duly signedwitnessed and taking careful and representative sampling is paramount in avoiding a dispute and to support resolution where dispute arises
MEPC1Circ 875 - Guidance on Best Practice for Fuel Oil PurchasersUsers for Assuring the Quality of Fuel Oil Onboard Ships also provides valuable information and guidance
Crew understanding and training is imperative in order to ensure that the bunkering procedures are being strictly adhered to and that records are being meticulously maintained
Although limited in their range of analysis onboard testing kits could prove useful in verifying the basic properties of the fuel oil such as density water content and viscosity and raising any concerns for an early intervention in anticipation of a potential dispute The on-board testing should however not be considered a substitute for laboratory analysis carried out as per ISO specification
The factors that need to be taken into consideration are the quality assurance in the supply chain contractual compliance segregated stemming and storage fuel analysis and fuel management
Members are encouraged to make use of the ISO 137392010 and regional standards such as SS600 amp SS524 Singapore Standards for Code of practice for bunkering Local requirements for bunkering must always be followed For vessels trading to the United States the USCG 33 CFR 155 also requires that their requirements are incorporated within the bunkering procedures followed recorded and available for inspection
Members are encouraged to maintain a register of all fuel suppliers in their area of operation and to regularly update the information based upon their fleet experience and other pertinent information that may be publicly available such as the IMO Global Integrated Shipping Information System (GSIS)
For further articles on the topichttpswwwsteamshipmutualcompublicationsArticlescompliance2020sulphurcap092018htm
httpswwwsteamshipmutualcompublicationsArticlesbunker-time-bars052019htm
httpswwwsteamshipmutualcompublicationsArticlesturkeyundeclared-bunker-cases-at-turkish-ports022020htm
httpswwwsteamshipmutualcomRA60_Bunker_ fuel_quality_problemspdf
RA 75- One of a series of Steamship Mutual Loss Prevention Bulletins Further information is available via the Loss Prevention Department +44 20 7247 54906
in line with the vessels International Safety Management procedures and is to be undertaken by a designated bunkering team which should include both deck and engine personnel
Rest and work hour requirements must be met especially in case of simultaneous operations with consideration given for non-critical operations to be postponed
Bunker in progress
Drip sampler and sealed container
SamplingAn official sample of bunker fuel is required as per MARPOL Annex VI Reg 18 and is to be provided by the supplier along with the BDN
Representative samples are also required for carrying out independent laboratory analysis and a ship sample should be retained for any further testing that may be required as highlighted for example in claims where contamination could be an issue
As per the guidance in MEPC 182(59) the samples should be drawn at the receiving shiprsquos inlet bunker manifold and should be drawn continuously throughout the bunker delivery period
In case of more than one supplier or for example where multiple vessels are used for supply of the required quantity of bunkers a separate set of samples should be available drawn along with the applicable BDN
General sampling procedures
bull A type-approved automatic or manualcontinuous drip sampler
bull A clean collection container of about 5litre capacity capable of being sealedat the needle valve in order to preventcontamination
bull Continuous uniform flow to be maintainedin order to fill the container with a samplerepresentative of the entire bunkeringprocess avoid changing the flow rate Whererequired the container should be changedensuring that containers are sealed inagreement with all parties Experiencesuggests that the sampling rate needs tobe closely monitored by the crew membermanning the manifold to prevent overfilling ofthe container but also to ensure an adequatequantity of sample is collected
bull Upon completion of bunkering the sealbetween the container and needle valve isbroken
bull The sample is thoroughly shaken forhomogeneity and immediately transferredinto clean 750 ml sample bottlessimultaneously filling the samples in portions(ie not sequential) until the bottles are filledwith at least 400ml in each and be careful toprevent any contamination of the samples
A minimum of four samples representative of the stemmed bunker should be collected ideally with additional samples being collected where possible and appropriate such as where a surveyor has been appointed or where a sample
RA 75- One of a series of Steamship Mutual Loss Prevention Bulletins Further information is available via the Loss Prevention Department +44 20 7247 54904
is required by the Charterer
MARPOL sample (statutory forreceiving vessel)
Supplierrsquos sample (may requestadditional and should be agreed inadvance)
Shiprsquos additional ship sample in casedispute ensues
Sample for laboratory analysis
A tamper proof seal and label with the below information must be fitted to each sample bottle
Vessel details and location
Supplier details and tanker orterminal name
Sampling location
Grade of fuel bunkered
Seal number for the sample bottle
Signature of supplier and receiverand stamped
Initial sealing breaking of seal of the collecting container and transfer to sample bottles and labelling must be witnessed and signed by both parties A statement must be recorded to this effect
The seal numbers should be recorded on the BDN including any additional samples that might have been taken on either side of the hose connection
The BDN and the labels of the sample bottles must be signed by both parties only upon completion of the bunkering and when the quantities have been verified Due care must be taken in this custody process to avoid any errors arising which could have detrimental consequences when pursuing or defending a potential claim in case of a dispute
Where the supply contact says that the supplier sample is binding the receiving vessel should ascertain the origin of the sample Where there is any doubt as to the veracity of the sample the receiving vessel should issue a letter of protest as detailed below
Letter of protest (LOP)Note of protest (NOP)Any deviation from the above procedures should be addressed and recorded at the time of bunkering
A letter of protest should be issued in such situations detailing the discrepancy Having pre-prepared templates could prove useful in such a situation The Club will be able to assist the Member in this regard
Whilst not exhaustive some of the reasons for an LOP include
bull Short supply of bunkers
bull BDN not issued or not in accordancewith the amended MARPOL VI Reg 185requirement
bull Source of the sample provided by supplieris unknown or not representative per MEPC182(59) or as per local regulations In suchinstances the label should be signed ldquoforreceipt only - source unknownrdquo
bull Refusal to grant access to the bunkervesselor refusal to carry out joint inspection
bull Discrepancy in stated properties in BDNsuch as temperature water content anddensity as may be verified by on board testkits
bull Lack of appropriate documentationcalibration certificates approved tank tablesand plans
Where there is any doubt as to the veracity of the MARPOL Sample provided or where the supplier fails to provide a MARPOL sample or an agreed binding sample the receiving vessel should endeavour to seek the agreement of the bunker supplier to utilise the vesselrsquos representative sample [MEPC 182(59)] as the MARPOL and binding sample The sample should be labelled and numbered for inclusion with the supplier delivered sample when provided and additionally recorded in the BDN where agreed The records of the additional samples should also be maintained in this case An inventory of a complete set of sample kits as provided by testing laboratories should always be maintained on board for this purpose
Dispute resolutionThe Owner or Charterer should immediately notify its PampI Club andor FDampD provider in the event of a dispute The Ownerrsquos Hull amp Machinery underwriters Charterersrsquo Damage to Hull underwriters should also be notified if the vesselrsquos machinery has been damaged If the seller was not the physical supplier a buyer should also consider notifying the latter in the event that it is possible to bring a claim in tort
Where not already in place an independent surveyor should be immediately appointed for protecting the interest of the party
In certain jurisdictions a supplier of fuel oil may have a maritime lien against the vessel Where a vessel is on charter Owners can try to protect the vessel against such claims by serving a lsquoprohibition of lien noticersquo on the supplier before the supply takes place The supplier is then on notice that the fuel oil is supplied for the account of the time charterer alone and no lien is attached to the vessel The BDN may
RA 75- One of a series of Steamship Mutual Loss Prevention Bulletins Further information is available via the Loss Prevention Department +44 20 7247 54905
be similarly endorsed by the ship owner although the legal effect is questionable
Dispute resolution procedures may also be specified in the contract including how the laboratory analysis is to be carried out in case of a fuel oil quality dispute
Retention and storageThe representative sample per Regulation 18 of Marpol VI lsquoMarpol samplersquo is required to be retained for 12 months or until the complete bunker supply has been consumed whichever is the longer period The PSC will request for the MARPOL sample along with the BDN in case of an alleged violation of the emission regulations
A record of the samples taken and retained should be maintained including details of appropriate disposal upon completion of the statutory period and when there is no ensuing dispute
The BDN must be retained by both parties for a period of three years and be readily available for PSC inspections
Similarly the supplier is also required to retain the BDN for the same period of at least three years and available for verification by the port state The supplier should retain their representative sample for a minimum of 30 days (3 months recommended) and longer in case of a dispute when it should be retained until resolution
The bunker sample should be stored outside the accommodation and preferably outside the engine room in a sheltered space away from direct exposure to sun light and not subject to elevated temperature recommended as at least 28oCelsius below the flash point A copy of the Material Safety Data Sheet must be displayed at the location
General recommendationsIn order to be able to draw out fair terms of contract close cooperation between parties involved in the bunkering process is strongly encouraged Although experience suggests that this can be difficult to implement The possibility for longer term contracts with suppliers should be explored where the vessel operations allow
It is imperative that the contractual terms are carefully considered (both the supply contract and any relevant charterparty)
Diligent pre-planning following well established procedures maintaining full documentary records duly signedwitnessed and taking careful and representative sampling is paramount in avoiding a dispute and to support resolution where dispute arises
MEPC1Circ 875 - Guidance on Best Practice for Fuel Oil PurchasersUsers for Assuring the Quality of Fuel Oil Onboard Ships also provides valuable information and guidance
Crew understanding and training is imperative in order to ensure that the bunkering procedures are being strictly adhered to and that records are being meticulously maintained
Although limited in their range of analysis onboard testing kits could prove useful in verifying the basic properties of the fuel oil such as density water content and viscosity and raising any concerns for an early intervention in anticipation of a potential dispute The on-board testing should however not be considered a substitute for laboratory analysis carried out as per ISO specification
The factors that need to be taken into consideration are the quality assurance in the supply chain contractual compliance segregated stemming and storage fuel analysis and fuel management
Members are encouraged to make use of the ISO 137392010 and regional standards such as SS600 amp SS524 Singapore Standards for Code of practice for bunkering Local requirements for bunkering must always be followed For vessels trading to the United States the USCG 33 CFR 155 also requires that their requirements are incorporated within the bunkering procedures followed recorded and available for inspection
Members are encouraged to maintain a register of all fuel suppliers in their area of operation and to regularly update the information based upon their fleet experience and other pertinent information that may be publicly available such as the IMO Global Integrated Shipping Information System (GSIS)
For further articles on the topichttpswwwsteamshipmutualcompublicationsArticlescompliance2020sulphurcap092018htm
httpswwwsteamshipmutualcompublicationsArticlesbunker-time-bars052019htm
httpswwwsteamshipmutualcompublicationsArticlesturkeyundeclared-bunker-cases-at-turkish-ports022020htm
httpswwwsteamshipmutualcomRA60_Bunker_ fuel_quality_problemspdf
RA 75- One of a series of Steamship Mutual Loss Prevention Bulletins Further information is available via the Loss Prevention Department +44 20 7247 54906
is required by the Charterer
MARPOL sample (statutory forreceiving vessel)
Supplierrsquos sample (may requestadditional and should be agreed inadvance)
Shiprsquos additional ship sample in casedispute ensues
Sample for laboratory analysis
A tamper proof seal and label with the below information must be fitted to each sample bottle
Vessel details and location
Supplier details and tanker orterminal name
Sampling location
Grade of fuel bunkered
Seal number for the sample bottle
Signature of supplier and receiverand stamped
Initial sealing breaking of seal of the collecting container and transfer to sample bottles and labelling must be witnessed and signed by both parties A statement must be recorded to this effect
The seal numbers should be recorded on the BDN including any additional samples that might have been taken on either side of the hose connection
The BDN and the labels of the sample bottles must be signed by both parties only upon completion of the bunkering and when the quantities have been verified Due care must be taken in this custody process to avoid any errors arising which could have detrimental consequences when pursuing or defending a potential claim in case of a dispute
Where the supply contact says that the supplier sample is binding the receiving vessel should ascertain the origin of the sample Where there is any doubt as to the veracity of the sample the receiving vessel should issue a letter of protest as detailed below
Letter of protest (LOP)Note of protest (NOP)Any deviation from the above procedures should be addressed and recorded at the time of bunkering
A letter of protest should be issued in such situations detailing the discrepancy Having pre-prepared templates could prove useful in such a situation The Club will be able to assist the Member in this regard
Whilst not exhaustive some of the reasons for an LOP include
bull Short supply of bunkers
bull BDN not issued or not in accordancewith the amended MARPOL VI Reg 185requirement
bull Source of the sample provided by supplieris unknown or not representative per MEPC182(59) or as per local regulations In suchinstances the label should be signed ldquoforreceipt only - source unknownrdquo
bull Refusal to grant access to the bunkervesselor refusal to carry out joint inspection
bull Discrepancy in stated properties in BDNsuch as temperature water content anddensity as may be verified by on board testkits
bull Lack of appropriate documentationcalibration certificates approved tank tablesand plans
Where there is any doubt as to the veracity of the MARPOL Sample provided or where the supplier fails to provide a MARPOL sample or an agreed binding sample the receiving vessel should endeavour to seek the agreement of the bunker supplier to utilise the vesselrsquos representative sample [MEPC 182(59)] as the MARPOL and binding sample The sample should be labelled and numbered for inclusion with the supplier delivered sample when provided and additionally recorded in the BDN where agreed The records of the additional samples should also be maintained in this case An inventory of a complete set of sample kits as provided by testing laboratories should always be maintained on board for this purpose
Dispute resolutionThe Owner or Charterer should immediately notify its PampI Club andor FDampD provider in the event of a dispute The Ownerrsquos Hull amp Machinery underwriters Charterersrsquo Damage to Hull underwriters should also be notified if the vesselrsquos machinery has been damaged If the seller was not the physical supplier a buyer should also consider notifying the latter in the event that it is possible to bring a claim in tort
Where not already in place an independent surveyor should be immediately appointed for protecting the interest of the party
In certain jurisdictions a supplier of fuel oil may have a maritime lien against the vessel Where a vessel is on charter Owners can try to protect the vessel against such claims by serving a lsquoprohibition of lien noticersquo on the supplier before the supply takes place The supplier is then on notice that the fuel oil is supplied for the account of the time charterer alone and no lien is attached to the vessel The BDN may
RA 75- One of a series of Steamship Mutual Loss Prevention Bulletins Further information is available via the Loss Prevention Department +44 20 7247 54905
be similarly endorsed by the ship owner although the legal effect is questionable
Dispute resolution procedures may also be specified in the contract including how the laboratory analysis is to be carried out in case of a fuel oil quality dispute
Retention and storageThe representative sample per Regulation 18 of Marpol VI lsquoMarpol samplersquo is required to be retained for 12 months or until the complete bunker supply has been consumed whichever is the longer period The PSC will request for the MARPOL sample along with the BDN in case of an alleged violation of the emission regulations
A record of the samples taken and retained should be maintained including details of appropriate disposal upon completion of the statutory period and when there is no ensuing dispute
The BDN must be retained by both parties for a period of three years and be readily available for PSC inspections
Similarly the supplier is also required to retain the BDN for the same period of at least three years and available for verification by the port state The supplier should retain their representative sample for a minimum of 30 days (3 months recommended) and longer in case of a dispute when it should be retained until resolution
The bunker sample should be stored outside the accommodation and preferably outside the engine room in a sheltered space away from direct exposure to sun light and not subject to elevated temperature recommended as at least 28oCelsius below the flash point A copy of the Material Safety Data Sheet must be displayed at the location
General recommendationsIn order to be able to draw out fair terms of contract close cooperation between parties involved in the bunkering process is strongly encouraged Although experience suggests that this can be difficult to implement The possibility for longer term contracts with suppliers should be explored where the vessel operations allow
It is imperative that the contractual terms are carefully considered (both the supply contract and any relevant charterparty)
Diligent pre-planning following well established procedures maintaining full documentary records duly signedwitnessed and taking careful and representative sampling is paramount in avoiding a dispute and to support resolution where dispute arises
MEPC1Circ 875 - Guidance on Best Practice for Fuel Oil PurchasersUsers for Assuring the Quality of Fuel Oil Onboard Ships also provides valuable information and guidance
Crew understanding and training is imperative in order to ensure that the bunkering procedures are being strictly adhered to and that records are being meticulously maintained
Although limited in their range of analysis onboard testing kits could prove useful in verifying the basic properties of the fuel oil such as density water content and viscosity and raising any concerns for an early intervention in anticipation of a potential dispute The on-board testing should however not be considered a substitute for laboratory analysis carried out as per ISO specification
The factors that need to be taken into consideration are the quality assurance in the supply chain contractual compliance segregated stemming and storage fuel analysis and fuel management
Members are encouraged to make use of the ISO 137392010 and regional standards such as SS600 amp SS524 Singapore Standards for Code of practice for bunkering Local requirements for bunkering must always be followed For vessels trading to the United States the USCG 33 CFR 155 also requires that their requirements are incorporated within the bunkering procedures followed recorded and available for inspection
Members are encouraged to maintain a register of all fuel suppliers in their area of operation and to regularly update the information based upon their fleet experience and other pertinent information that may be publicly available such as the IMO Global Integrated Shipping Information System (GSIS)
For further articles on the topichttpswwwsteamshipmutualcompublicationsArticlescompliance2020sulphurcap092018htm
httpswwwsteamshipmutualcompublicationsArticlesbunker-time-bars052019htm
httpswwwsteamshipmutualcompublicationsArticlesturkeyundeclared-bunker-cases-at-turkish-ports022020htm
httpswwwsteamshipmutualcomRA60_Bunker_ fuel_quality_problemspdf
RA 75- One of a series of Steamship Mutual Loss Prevention Bulletins Further information is available via the Loss Prevention Department +44 20 7247 54906
be similarly endorsed by the ship owner although the legal effect is questionable
Dispute resolution procedures may also be specified in the contract including how the laboratory analysis is to be carried out in case of a fuel oil quality dispute
Retention and storageThe representative sample per Regulation 18 of Marpol VI lsquoMarpol samplersquo is required to be retained for 12 months or until the complete bunker supply has been consumed whichever is the longer period The PSC will request for the MARPOL sample along with the BDN in case of an alleged violation of the emission regulations
A record of the samples taken and retained should be maintained including details of appropriate disposal upon completion of the statutory period and when there is no ensuing dispute
The BDN must be retained by both parties for a period of three years and be readily available for PSC inspections
Similarly the supplier is also required to retain the BDN for the same period of at least three years and available for verification by the port state The supplier should retain their representative sample for a minimum of 30 days (3 months recommended) and longer in case of a dispute when it should be retained until resolution
The bunker sample should be stored outside the accommodation and preferably outside the engine room in a sheltered space away from direct exposure to sun light and not subject to elevated temperature recommended as at least 28oCelsius below the flash point A copy of the Material Safety Data Sheet must be displayed at the location
General recommendationsIn order to be able to draw out fair terms of contract close cooperation between parties involved in the bunkering process is strongly encouraged Although experience suggests that this can be difficult to implement The possibility for longer term contracts with suppliers should be explored where the vessel operations allow
It is imperative that the contractual terms are carefully considered (both the supply contract and any relevant charterparty)
Diligent pre-planning following well established procedures maintaining full documentary records duly signedwitnessed and taking careful and representative sampling is paramount in avoiding a dispute and to support resolution where dispute arises
MEPC1Circ 875 - Guidance on Best Practice for Fuel Oil PurchasersUsers for Assuring the Quality of Fuel Oil Onboard Ships also provides valuable information and guidance
Crew understanding and training is imperative in order to ensure that the bunkering procedures are being strictly adhered to and that records are being meticulously maintained
Although limited in their range of analysis onboard testing kits could prove useful in verifying the basic properties of the fuel oil such as density water content and viscosity and raising any concerns for an early intervention in anticipation of a potential dispute The on-board testing should however not be considered a substitute for laboratory analysis carried out as per ISO specification
The factors that need to be taken into consideration are the quality assurance in the supply chain contractual compliance segregated stemming and storage fuel analysis and fuel management
Members are encouraged to make use of the ISO 137392010 and regional standards such as SS600 amp SS524 Singapore Standards for Code of practice for bunkering Local requirements for bunkering must always be followed For vessels trading to the United States the USCG 33 CFR 155 also requires that their requirements are incorporated within the bunkering procedures followed recorded and available for inspection
Members are encouraged to maintain a register of all fuel suppliers in their area of operation and to regularly update the information based upon their fleet experience and other pertinent information that may be publicly available such as the IMO Global Integrated Shipping Information System (GSIS)
For further articles on the topichttpswwwsteamshipmutualcompublicationsArticlescompliance2020sulphurcap092018htm
httpswwwsteamshipmutualcompublicationsArticlesbunker-time-bars052019htm
httpswwwsteamshipmutualcompublicationsArticlesturkeyundeclared-bunker-cases-at-turkish-ports022020htm
httpswwwsteamshipmutualcomRA60_Bunker_ fuel_quality_problemspdf
RA 75- One of a series of Steamship Mutual Loss Prevention Bulletins Further information is available via the Loss Prevention Department +44 20 7247 54906